Business Finance I: Fin 338

Section 1

Dr. Mark Walker Class Hours: M W F, 9:00 - 9:50 am

Office 237 Holman Class Meets: Conner 111

Phone 915-7721 Office Hours: T Th, 2:30 – 4:00 pm

e-mail: mwalker@bus.olemiss.edu

COURSE DESCRIPTION – problems and theories in financial decision making with attention given to acquisition and management of assets, cost of capital, and procurement of funds.

Prerequisites: C minimum in Fin 331. Co-requisite ACCY 301.

Text: Brigham, Eugene F., and Phillip R. Daves, Intermediate Financial Management (9^th Edition), Thomson, 2007.

Grading – Your final grade will be based on 500 points.

Exam 1 100 points

Exam 2 100

Exam 3 100

Exam 4 100

Drop lowest grade (exam 1-4) (100)

Exam 5 100

Exam sub-total 400

Spreadsheet problems 100

Total 500

COURSE POLICIES

The School of Business Administration upholds honor and academic integrity in all of its teaching, research, and service activities. All business faculty, staff, and students are charged with the responsibility to behave with personal and professional integrity and to refrain from dishonorable conduct.
Each student is required to have his or her own financial calculator (e.g. HP-10B or TI BA II Plus).

Other financial calculators may be used. Students will not be permitted to share calculators

during exams.

Each student is required to bring a green scantron to the exams.
Students are permitted to use a formula sheet during the exams (1 sheet: 8 ½” x 11”).
If a student misses an exam, then the missed exam will be used as the drop grade. If you know that you will need to miss an exam, please let the instructor know before the test date.
Each exam will be self-contained (i.e., not cumulative). Although the exams are not cumulative by design, students should recognize that the material in later chapters does build on the material from previous chapters.
Students are encouraged to read the chapters before class. Students are responsible for completing the homework assigned for each chapter. Students also are responsible for working the self-test problems. Homework will not be collected. I also strongly encourage students to visit the Product Support Web site at http://thomsonedu.com/thomsonnow (see the back of the textbook) for additional study aids and practice quizzes.

8. Students can work in groups of two on the spreadsheet problems.

	Schedule (Fin 338)


Date	Chapter	Topic		Homework

		Part 2. Corporate Valuation

21-Aug	9	Financial Planning and Forecasting		1 - 9
		Financial Statements

23-Aug	9	Financial Planning and Forecasting		1 - 9
		Financial Statements

25-Aug	10	Determining the Cost of Capital		1 - 15

28-Aug	10	Determining the Cost of Capital		1 - 15

30-Aug	11	Corporate Value and Value-Based		1 - 10
		Management

		Assign Spreadsheet Problem #1 - Problem # 11-11

1-Sep	11	Corporate Value and Value-Based		1 - 10
		Management

4-Sep	Labor Day


6-Sep	Review	Spreadsheet Problem #1 due


8-Sep	Exam 1


		Part 3. Project Valuation

11-Sep	12	Capital Budgeting: Decision Criteria		1 - 17

13-Sep	12	Capital Budgeting: Decision Criteria		1 - 17


15-Sep	No Class

18-Sep	13	Capital Budgeting: Estimating Cash Flows		1 - 8
		and Analyzing Risk

		Assign Spreadsheet Problem #2 - Problem # 13-11

20-Sep	13	Capital Budgeting: Estimating Cash Flows		1 - 8
		and Analyzing Risk

22-Sep	6	Financial Options		1 - 6


25-Sep	14	Real Options		1 - 8

		Spreadsheet Problem #2 is due

27-Sep	14	Real Options		1 - 8


29-Sep	Review


2-Oct	Exam 2


		Part 4. Strategic Financing Decisions

4-Oct	15	Capital Structure Decisions: Part I		1 - 6

6-Oct	15	Capital Structure Decisions: Part I		1 - 6

9-Oct	16	Capital Structure Decisions: Part II		1 - 7


11-Oct	16	Capital Structure Decisions: Part II		1 - 7

13-Oct	17	Distributions to Shareholders: Dividends and		1 - 9
		Repurchases

16-Oct	17	Distributions to Shareholders: Dividends and		1 - 9
		Repurchases

18-Oct	Review


20-Oct	Exam 3


		Part 6. Working Capital Management

23-Oct	21	Working Capital Management		1 - 17

		Assign Spreadsheet Problem #3 - Problem # 21-18


25-Oct	21	Working Capital Management		1 - 17

27-Oct	22	Providing and Obtaining Credit		1 - 10

30-Oct	22	Providing and Obtaining Credit		1 - 10

		Spreadsheet Problem #3 is due

1-Nov	23	Other Topics in Working Capital		1 - 2
		Management

3-Nov	23	Other Topics in Working Capital		1 - 2
		Management

6-Nov	Review


8-Nov	Exam 4


		Part 7. Special Topics

10-Nov	19	Lease Financing		1 - 5

		Assign Spreadsheet Problem #4 - Problem # 19 - 6

13-Nov	19	Lease Financing		1 - 5


15-Nov	25	Bankruptcy, Reorganization, and Liquidation		1 - 3


17-Nov	25	Bankruptcy, Reorganization, and Liquidation		1 - 3

		Spreadsheet Problem #4 is due

20-Nov	Thanksgiving

22-Nov	Thanksgiving

24-Nov	Thanksgiving


27-Nov	26	Mergers, LBO's, Divestitures, and Holding		1 - 6
		Companies

29-Nov	26	Mergers, LBO's, Divestitures, and Holding		1 - 6
		Companies

1-Dec	Review


6-Dec	Exam 5		8:00 AM